Fraud And Legal Application Of L/c In Trade Between China And Kazakstan

In international trade, payment by means of a letter of credit has become so widely used It is the most effective method to secure payment in an international trade transaction, in a way that takes care of the interests of both the seller and the buyer.The documentary feature of credit brings about the problem of fraud. The credit is intended to provide the beneficiary with the assurance of payment from the issuer. It seems there is no room left for issuers not to honor such payment .However, in some occasions , to effect payment will go against the rule of equity because the fraud and forgery is outrageous.At present, the great status of the letter of credit is faced with the most serious challenge. because the continual happening of lots of fraud cases in letter of credit gravely shook the buyer and seller's confidence given by letter of credit and done serious harm to the international trade. The author of this paper will systematically elaborate and deeply study fraud and related legal issues in letter of credit, then hope it is helpful to establish statute about fraud in letter of credit and improve related judicial practice.The author studied the problem from 5 parts。In the first part,this author state that a general introduction to l/c.the author think that as for the legal nature , l/c is a conditional undertaking of payment. The reasons that lead to fraud in l/c are different too. But the main reasons why fraud in l/c happens are of l/c systemic defect ..In the second part , author mainly analyzes the settlement measures in China and Kazakhstan trade ,including the foreign exchange control system in Kazakhstan, the detailed conditions and existing problems in settlement of China and Kazakhstan trade. At last , analyzing the necessities and possibilities of cooperation in financial...